Excerpts of Report to MACC

I, XXXXXX have received the following documents in an envelope addressed to my attention which was left at my office at the above addresss. I do not know the identity of the sender:-

1. Letter dated 28 Jan 2009 addressed to YAB Dato’ Seri Hj Abdullah Ahmad Badawi, Prime Minister of Malaysia; YAB Dato’ Seri Mohd Najib Tun Abdul Razak, Deputy Prime Minister; YB Dato Sri Ong Tee Keat, Minister of Transport and YB Dato’ Liow Tiong Lai, Minister of Health; (Doc 1)
   
2. Company Search for Maha Global Sdn Bhd; (Doc 2)
   
3. Company Search for Kurnia Heights Sdn Bhd; (Doc 3)
   
4. Form 49 dated 23/3/2005 lodged by Kurnia Heights Sdn Bhd; (Doc 4)
   
5. Copy of issue document of title for the land held under H.S (D) 239701 No. PT PTD 71027 Mukim Pulai, Johor Bahru; (Doc 5)
   
6. Power of Attorney dated 7/10/2005 between Maha Global Sdn Bhd and Kurnia Heights Sdn Bhd; (Doc 6)
   
7. Form 19B National Land Code dated 10/10/2005; (Doc 7)
   
8. Form H Land Acquisition Act 1960 dated 5/1/2006; (Doc 8)
   
9. Borang G- Award Pampasan Bertulis dated 5/1/2006 for a sum of RM29,889,872-00; (Doc 9)
   
10. Letter dated 26/1/2006 from Pentabir Tanah Johor Bahru to Kementerian Kesihatan Malaysia; (Doc 10)
    
11. Letter dated 23/3/2006 from Jabatan Pegairan dan Saliran Johor to Pejabat kesihatan Johor Bahru; (Doc 11)
    
12. Letter dated 29/3/2006 from Jabatan Mineral dan Geosains Johor to Pejabat Kesihatan Johor Bahru; (Doc 12)
    
13. Letter dated 10/4/2006 from Pejabat Kesihatan Johor Bahru to Yang Dipertua Majlis Perbandaran Johor Bahru Tengah, Skudai; (Doc 13)
    
14. Letter dated 24/4/2006 from Messrs Tea, Kelvin Kang & Company to Pentadbir Tanah Daerah Pejabat Pentadbiran Tanah Johor Bahru; (Doc 14)
    
15. Letter dated 23/5/2006 from Kementerian Kesihatan Malaysia to Pentabir Tanah Daerah Johor Bahru; (Doc 15)
    
16. Letter dated 23/5/2006 from Kementerian Kesihatan Malaysia to Pengarah Kesihatan Negeri Johor; (Doc 16)
    
17. Baucer bayaran pampasan pengambilan balik tanah for the sum of RM29,889,872-00; (Doc 17)
    
18. Maybank Cheque No 0007113 dated 30/6/2006 for the sum of RM7,463,259.50; (Doc 18)
    
19. Letter dated 4/7/2006 from Jabatan Kesihatan Negeri Johor to Pentabir Tanah Daerah Johor Bahru; (Doc 19)
    
20. Waran Peruntukan dated 25/5/2006; (Doc 20)
    
21. Pergerakan Dokumen eSPKB dated 14/6/2006 for waran peruntukan for the sum of RM 29,890,157-00; (Doc 21)
    
22. Baucer bayaran kerajaan Malaysia for payment to Pentadbir Tanah Johor Bahru for the sum RM7,463,259-50 dated 27/6/2006; (Doc 21)
    
23. Baucer bayaran kerajaan Malaysia for payment to Henry Butcher Malaysia (Johor) Sdn Bhd for the sum of RM36,834-00 dated 27/06/2006; (Doc 22)
    
24. Pergerakan Dokumen eSPKB dated 27/6/2006 for daftar bayaran for the sum of RM36,834-00; (Doc 22)
    Baucer bayaran for payment to Kurnia Heights Sdn Bhd for the sum of RM19,340,983-50 dated 27/06/2006; (Doc 23)
    
25. Pergerakan Dokumen eSPKB dated 27/6/2006 for daftar bayaran for the sum of RM19,340,983-50; (Doc 23)
    Baucer bayaran for payment to Maha Global Sdn Bhd for the sum of RM3,048,795-00 dated 27/06/2006; (Doc 24)
    
26. Pergerakan Dokumen eSPKB dated 27/6/2006 for daftar bayaran for the sum of RM3,048,795-00; (Doc 24)
    Letter dated 8/8/2006 from Kementerian Kesihatan Malaysia to Ketua Penolong Setiausaha Cawangan Belanjawan untuk mengeluarkan Waran Peruntukan untuk perlantikan penilaian swasta; (Doc 25)
    
27. Letter dated 16/7/2007 from Kurnia Heights Sdn Bhd to Pentadbir Tanah Daerah Pejabat Pentadbiran Tanah Johor Bahru; (Doc 26)
    
28. Letter dated 23/11/2007 from Kementerian Kesihatan Malaysia to Setiausaha Bahagian Cawangan Belanjawan untuk mengeluarkan Waran Peruntukan bayaran lewat RM979,917-00; (Doc 27)

Having perused the aforesaid documents and the land search result, I personally believe an offence under the Malaysian Anti-Corruption Commission Act have been committed and make this report so as to enable investigation be carried out by the Anti-Corruption Commission and to take the necessary action as may be deemed fit by the Commission. My belief is based on the following facts elucidated from aforesaid documents:-

1. The issue document of title of the said land showed that the registered owner of the land concerned is Maha Global Sdn Bhd.
   
2. A private caveat was lodged by Kurnia Heights Sdn Bhd on 11/10/2005 pursuant to an option dated 12/8/2005 granted by Maha Global Sdn Bhd to Kurnia Heights Sdn Bhd (please refer to Borang 19B).
   
3. Kurnia Heights Sdn Bhd was incorporated on 25/2/2005 (please refer to the company search).
   
4. There was a change of directors on 22/3/2005, where Soh Oon Hai (Nric No 690628-04-5097) and Phua Tai Kiang (Nric No 630111-06-5015) were appointed (please refer to Form 49).
   
5. A power of attorney dated 7/10/2005 was granted by Maha Global Sdn Bhd to Kurnia Heights Sdn Bhd pursuant to a sale purchase agreement entered into between the parties thereto (please refer to the Power Attorney dated 7/10/2005).
   
6. Total acquisition cost was RM29,889,872.00 (please refer to Borang G & H) comprised of the following:-
   
   i) RM 4,065,060-00 to be paid to RHB Bank Berhad as Pemegang Gadaian pursuant to a legal charge created by Maha Global Sdn Bhd;
   
   ii) RM25,787,978-00 to be paid to Kurnia Heights Sdn Bhd as Tuan Tanah (Pemegang Amanah/Pengkeveat);
   iii) RM36,834-00 to Henry Butcher Malaysia (Johor) Sdn Bhd as penilai tuan tanah
   
7. However, from the letter dated 4/7/2006 from Jabatan Kesihatan Negeri Johor to Pentadbir Tanah Daerah Johor Bahru it was stated that the acquisition costs of RM29,889,872.00 was paid to the following parties:-
   
   i) RM3,048,795-00 was to be paid to Maha Global Sdn Bhd RM36,834-00 was to be paid to Henry Butcher
   ii) RM19,340,983.50 was to be paid to Kurnia Heights Sdn Bhd
   iii) RM7,463,259-50 was to be paid to Pentadbir Tanah Daerah Johor Bahru.
   
8. From the figures, I would assume that the sale and purchase price of the said land between Maha Global Sdn Bhd and Kurnia Heights Sdn Bhd is in the region of RM8 million taking into consideration of the fact that a redemption sum of approximately RM4.065 million is to be paid to the chargee bank, RHB Bank Berhad and a sum of approximately RM 3.048 million is to be paid to Maha Global Sdn Bhd and the usual up front deposit of 10% of the purchase price (approximately RM800k).
   
9. Hence, Kurnia Heights Sdn Bhd has made an extra ordinary gain of RM19,340,983-50 out of the sale and purchase transaction.
   
10. The timing of the purchase of the said land by Kurnia Heights Sdn Bhd and the gazette of the land acquisition was inexplicable on the basis of coincidence. The date of the sale and purchase by reference to the Power of Attorney was on or about 7/10/2005 and the date of the gazette was on 24/11/2005 (please refer to issue document of title). Hence, it can be inferred that Kurnia Heights Sdn Bhd has prior and proximate knowledge of the intended acquisition by the Health Ministry. The public would generally not be privy to such intimate information.
    
11. Added to that, the land use for the said land was restricted to “Tanah in hendaklah digunakan untuk Sekolah Swasta”. This raises the question of why Kurnia Heights Sdn Bhd being an investment holding company (not in the business of education) wishes to buy a land with such restriction.
    
12. From the unsigned letter dated 28/1/2009 purportedly issued to the Prime Minister, Deputy Prime Minister, Minister of Transport and Minister of Health it was alleged that there was wrong doing by the cronies of the former Health Minister, Dato Seri Dr Chua Soi Lek through his political secretary Datuk Tee Siew Kiong.
    
13. The letter dated 16/7/2007 from Kurnia Heights Sdn Bhd authorizing Tee Yok Ong (who happened to have the same surname with Datuk Tee) who is not a director nor shareholder of the company to collect the cheque on behalf of the company is a cause for suspicion that warrants investigation. Further, in the said letter dated 28/1/2009 it was alleged that one of the two shareholders of Kurnia Heights Sdn Bhd is the brother-in- law of Datuk Tee Siew Kiong.
    
14. In view of aforesaid facts and the serious allegations contained in the letter dated 28/1/2009, investigation to be carried by MACC is warranted. Further, an investigation by MACC would afford the opportunity for those alleged of wrong doing in particular, the political secretary of the former Health Minister and possibly the former Health Minister as named the said letter dated 28/1/2009 to clear their good name. On the other hand, if the investigation does prove the allegation to be true, it would warrant the investigation on other land acquisition by the Health Ministry during that relevant period of time.

This is my report.